23 Aug WHAT WILL HAPPEN TO EXISTING MISSION FOUNDATION AND THE ASSETS? HOW MUCH IS ANTICIPATED TO BE IN THE CONSOLIDATED FOUNDATION? WHAT ANNUAL SPENDING RATE WOULD BE ANTICIPATED? PARTICULARLY, I’D BE INTERESTED HOW MUCH IS ANTICIPATED TO BE REALIZED FROM THE SALE, AND WILL ALL THAT MONEY GO INTO THE FOUNDATION?
Thank you for your excellent questions. First, none of the existing Foundations within the Mission Health system are part of the contemplated transaction with HCA Healthcare. Those foundations will remain intact.
Second, the Dogwood Health Trust, contemplated as part of this transaction, will receive all of the proceeds from the transaction. Those proceeds will be determined by the ultimate purchase price paid, and any remaining balances within Mission Health after retiring all outstanding debt, payables and adjustments for working capital. It is those total proceeds that will be used to improve the health of the people in western North Carolina and the surrounding region. While many details remain to be determined, including the specific structure of the newly created Dogwood Health Trust, a rule of thumb might be that 5% of foundations assets are spent yearly in support of its mission.